Xcel Energy Pours Millions into Fueling Clean Power Production at Sherco Generating Plant and Beyond

(KNSI) — Xcel Energy is celebrating a $58 million investment to produce clean power at the Sherco Power Plant in Becker and beyond.

The company will use part of the money for a hydrogen project at the plant to create steam for industrial use. The five-megawatt electrolyzer would use renewable energy from solar or wind facilities to produce clean hydrogen.

The proposal includes a portfolio of pilot projects that, if scaled up, have the potential to reduce carbon emissions from natural gas significantly, according to the company. It also claims the move would cut 54,000 metric tons of carbon dioxide emissions from getting into the air. A press release states that’s equivalent to taking around 12,000 gasoline-powered vehicles off the road each year.

If the Public Utilities Commission approves the proposal, Xcel Energy expects the average residential natural gas bill to increase by about $1.39 per month from 2025 to 2029.

Other projects are being worked on in Shakopee, Inver Grove Heights, and Red Wing.

Xcel is moving ahead with plans to be a net-zero power provider by 2050. The latest five-year plan is part of the company’s Natural Gas Innovation Plan in Minnesota.

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